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Diffusion of Innovations

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5 views11 pages

Diffusion of Innovations

Uploaded by

suchita
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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“Diffusion of Innovations”

Meaning
Diffusion of innovation is the process by
which acceptance of an innovation (new
products or new service or new idea) is
spread by communication (mass media,
sales people, informal conversation) to
members of the target market over a
period of time.
Factors affecting diffusion
• Innovation characteristics
• Individual characteristics
• Social network characteristics
Innovation characteristics
• Observability
– The degree to which the results of an innovation are visible to
potential adopters
• Relative Advantage
– The degree to which the innovation is perceived to be superior to
current practice
• Compatibility
– The degree to which the innovation is perceived to be consistent
with socio-cultural values, previous ideas, and/or perceived needs
• Trial ability
– The degree to which the innovation can be experienced on a
limited basis
• Complexity
– The degree to which an innovation is difficult to use or
understand.
Rogers’ (1995)
Diffusion of Innovation
Stages of adoption:

Awareness - the individual is exposed to the


innovation. Awareness towards the product so that
they are the interested in that product.

Interest - the individual becomes interested in the


new idea and seeks additional information about it

Evaluation - individual mentally applies the


innovation to his present and anticipated future
situation, and then decides whether or not to try it

Trial - the individual makes full use of the


innovation

Adoption - the individual decides to continue the full


use of the innovation
Categories of Adopters

-2σ -σ +σ
The Chasm!

2.5% 13.5% 34% 34% 16%

Innovators Early Early Late Laggards


Adopters Majority Majority
The
Chasm

{
{
{

{
{

Technology Visionaries Pragmatists Conservatives Skeptics


Enthusiasts
Innovators:
Technology Enthusiasts
• Appreciate technology for its own sake
• Motivated by idea of being a change agent
• Will tolerate initial glitches
• Will develop make-shift solutions
• Provide early revenue for marketers—but not a large
group
• Importance: They are the gatekeeper to the next
group of adopters.
Early Adopters: “Visionaries”
• Attracted by high-risk/high-reward projects (in returns of psychological
and substantive benefits)
• Not necessarily very price sensitive
• Product Form Competition: Between categories of solutions
(determinates of standard/dominant design)
• Early adopters communicate horizontally (across industry
boundaries)
• Opinion leaders, change agents
Early Majority: “Pragmatists”
• Comfortable with only evolutionary changes in business
practices, in order to gain productivity enhancements
• Risk aversion to disruptions in their operations
• Want reliable service
• Seek the convenient “whole product” design
– A total solution provided at once
• Buy only with a reference from trusted colleague in same
industry
Late Majority: “Conservatives”

• Risk averse, technology shy


• Very price sensitive
• Require completely pre-assembled, bullet-proof
(reliable performance) solutions
• Motivated only by need to keep up with
competitors in their industry
• Rely on single, trusted advisor
Laggards: “Skeptics”

• Want to maintain status quo


• Technology is a hindrance to operations
• Buy only if all other alternatives worse

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